Rates

Title: ELCA Pension Board to Raise Medical-Dental Contribution Rates
ELCA NEWS SERVICE

August 29, 1996

PENSION BOARD TO RAISE MEDICAL-DENTAL
CONTRIBUTION RATES (61 lines)
96-20-059-RK

     MINNEAPOLIS (ELCA) -- The Evangelical Lutheran Church in
America's Board of Pensions trustees approved an average increase
of 9 percent in contribution rates or premiums for medical-
dental coverage for 1997. Even with the 1997 contribution rate
increase, board staff told trustees at their quarterly meeting
here Aug. 1-2, rates are still below the 1993 rates for most plan
members.
     "Although the health-care inflation factor has been moderate
for the past few years, there are signs that premium increases
are on the rise," said John G. Kapanke, president of the ELCA
Board of Pensions.
     "During this era of rapid changes in the health-care
industry, the board is constantly reviewing alternative
strategies designed to keep the cost of the health program as low
as possible for our ELCA congregations and members," he said.
     Claims plus administrative expenses are expected to exceed
contributions, even with increased contributions. The resulting
shortfall would be made up by reducing the ELCA Medical-Dental
Plan#s surplus from $28.2 million to $23.6 million by Dec. 31,
1997.
     Trustees approved an 11 percent 1997 medical-dental
contribution rate increase for ELCA plan retirees over age 65.
Persons who retired under the former Lutheran Church in America
(LCA) or American Lutheran Church plans will have improved
benefits in 1997. These persons would see the rate increase 17
percent, except for LCA retirees who do not choose the dental
benefit.
     The trustees received a progress report on a "total member
service strategy." The strategy focuses on "providing quality
and value through a broad array of pension, health and other
employee benefits and related services that meet members diverse
needs throughout their lifetime."
     The trustees' investment committee spent most of its time
looking at current strategies in fixed income investing (bonds).
They also discussed the possible implications of an upcoming
change toward market valuation in bond and balanced funds.
     Trustee Earl L. Mummert, Harrisburg, Pa., worried that these
new options available to plan members provide "a great
opportunity for the participants to shoot themselves in the
foot." The trustees urged the board to continue its efforts in
educating participants regarding their investment choices.
     In other action the ELCA Board of Pensions trustees:
     * Improved benefits under the medical-dental plan for
persons outside the Aetna managed-care network areas by
increasing the guidelines for "reasonable and customary" charges
from the 80th percentile to the 95th percentile of costs for a
given procedure in that locality, beginning Jan. 1, 1997. The
guidelines protect the plan from excessively high claims.
     * Heard a report that Pension Board investments have
averaged 12.36 percent gains over a five-year period ending May
31, 1996, adding 0.28 percent in value over the benchmarks.
     * Noted that the number of active participants in the
ELCA Pension and Other Benefits Program decreased by 25 during
the first half of this year to 14,193. The number of eligible
ordained ministers declined by 86.

For information contact: Ann Hafften, Dir., ELCA News Service,
(312) 380-2958 or [log in to unmask]; Frank Imhoff, Assoc. Dir.,
(312) 380-2955 or [log in to unmask]